1 w7 identifying opportunities by gathering and analyzing corporate spend data pacific gas and...
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W7 Identifying Opportunities by Gathering and Analyzing Corporate Spend Data
Pacific Gas and Electric Company
Joan KerrDirector, Supplier Diversity and Sustainability
November 5, 2014
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PG&E Supplier Diversity 2
• 107 years old
• One of the largest natural gas and electric utilities in the U.S.
• 21,000 employees
• 15 million customers
• 160,000 circuit miles of electric transmission lines.
• 49,000 miles of natural gas transmission pipelines.
• 5,000 suppliers
“PG&E” refers to Pacific Gas and Electric Company a subsidiary of PG&E Corporation. ©2011 Pacific Gas and Electric Company. All rights reserved.
About PG&E
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PG&E Supplier Diversity 3
Portfolio Spend Area Highlights Portfolio Spend Area Highlights Portfolio Spend Area Highlights
Generation Portfolio
Materials and Services to generate:•Hydro Power •Fossil Power •Renewable Power
Corporate Services
Business ConsultingFinancial ServicesForms and StationaryHR / Staffing ServicesLegalMarketingOffice SuppliesStaff AugmentationTravel
Electric Ops
Electrical ConstructionTransmission & Distribution TransformersVegetation ManagementCivil ConstructionMRO MaterialsEngineering Services
Diablo Canyon
Power Plant (DCPP)
DCPP Nuclear ProcurementDCPP Warehousing and Logistics
IT / Telecom
Computer Hardware and SoftwareTelecom EquipmentIT ConsultingIT Security
Gas Ops
Hydro-TestingPipeline ConstructionCivil ConstructionEngineering ServicesData IntegrityMRO MaterialsGas Line Inspection
Supplier Quality
Product InspectionsField Material Problem ReportingManagement of Vendor Quality Programs
Customer Care
Consultant Services for Energy Efficiency Programs:•Customer Operations•Integrated Demand-Side Management•Smart Meter
Shared Services
Transportation ServicesEnvironmental (Permits, Licensing, Remediation)Facilities Management Corporate Security
PG&E Spend Categories
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PG&E Supplier Diversity 4
Analysis Tools
Corporate Spend by Line of Business (LOB)
• Funnel Report• Status of key projects, including savings detail and DBEs
awarded
• Expiring Contracts List• List of potential upcoming bids
• Category Plans• Marketplace analysis and existing DBEs
• S1/S2 Long Range LOB Plans• Multi-year plans and priorities by line of business
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PG&E Supplier Diversity 5
Identifying OpportunitiesLOB Champions and Goal-Setting Process
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PG&E Supplier Diversity 6
Analyzing impact of PG&E’s Prime Supplier Program (PSP)$675.5 million in Tier 2 spending with DBEs, a
10.6% YOY increase.
Additional $300M+ attributed to DBE business solution partnerships and VARs
Over 40% accomplished through our prime suppliers
2013 PG&E Supplier Diversity SpendOver $2.3B
Prime Supplier Program Other Direct
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PG&E Supplier Diversity 7
…drives focus on key PSP management priorities
Monitor
• Data Trends• Spend Profile
Changes• EOY Forecasting• Scorecards• Champion Meeting
Educate• PSP Guide• Training Webinars• Pre-Bid Meetings
Evaluate
• Diversity Integration Validation & Review Council
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PG&E Supplier Diversity 8
Reporting Organizational Spend
• Overall Company Performance, reviewed by President
• Vendor Spend Report
• Tier Two Subcontracting Report
• Line of Business Champion Report
• Director Level Report
Maintain Visibility
Share Progress
Reinforce Accountability
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PG&E Supplier Diversity 9
PG&E Supplier Diversity:5-Year Performance Trend
$268.4M
54.4%*Not Adjusted
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PG&E Supplier Diversity 10
MBE Performance Trend
Year-Over-Year
(2013 v. 2012)• Total MBE spend $1.5B
or 27.4%
• Increased MBE year-over-year 17.8% or $227.6M
Five-Year Positive Trend
(2009 to 2013)• Total MBE spend nearly
tripled, 173.5% or $955.1M
$550 $681
$1,016
$1,278
$1,505
15.2%
19.6%
23.1%24.2%
27.4%
2009 2010 2011 2012 2013
MBE Performance ($M)2009 - 2013
MBE % MBE
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PG&E Supplier Diversity 11
More information available
To learn more about PG&E’s Supplier
Diversity Program, please visit us at
www.pge.com/supplierdiversity/
…where you will find:• 2013 Annual Report• Diverse Business Events Calendar• “Powered by Diversity” Newsletters• “Diverse Suppliers Go Green”
resources
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Thank You!